The textile industry is expecting an announcement soon on a revised Production Linked Incentive (PLI) scheme for the sector, with focus on manmade fibre (MMF) textiles.
Union Minister for Textiles Giriraj Singh recently posted on X, “From expanding opportunities to smoother implementation, the PLI Scheme is now more dynamic than ever. With new reforms, the Ministry of Textiles has made it more flexible, industry-friendly and geared towards ease of doing business, which will help in driving growth in MMF & Technical Textiles to the next level.”
According to the post, the scheme will include eight new HSN codes for MMF apparel and nine new codes for MMF fabrics. The unit can be set up within an existing company and the investment criteria is revised to ₹150 crore (part IA) and ₹50 crore (part 2A). Further the incremental turnover required for incentives is 10 %.
Chairman of Confederation of Indian Textile Industry Ashwin Chandran said in a press release that the significant lowering of the investment thresholds and the changes in the turnover-linked incentive structure would prove pivotal in fast-tracking the growth of the Indian textile and apparel sector.
Durai Palanisamy, chairman of the Southern India Mills’ Association, said the scheme will attract investments from MSMEs.
Industry sources said a notification on the revised scheme is expected soon and the government should include some of the HSN codes covering the cotton textile and apparel sector.